Remarks by Chairman of the Federal Reserve Jerome Powell that U.S. inflation “has improved considerably” propelled the New York stock market to record highs on the 2nd. The S&P 500, reflecting market conditions, surpassed the 5,500 mark for the first time while the tech-heavy Nasdaq broke through the 18,000 mark.
Tesla, which reported better-than-expected second-quarter delivery results, soared 10%, and Nvidia surged 7%.
All seven major tech stocks, the Magnificent 7 (M7), saw gains except for Nvidia. The company’s stock price fell due to the news that French competition authorities are preparing antitrust sanctions.
Surpassing the 5,500 and 18,000 Marks
All three major indices of the New York Stock Exchange rose.
This increase was driven by heightened expectations of a September interest rate cut, following Powell’s optimistic outlook on inflation.
The Dow Jones Industrial Average, composed of 30 large-cap stocks, closed at 39,331.85, up 162.33 points (0.41%).
The S&P 500 surpassed the 5,500 mark for the first time, setting a new all-time high after nine trading days, closing at 5,509.01, up 33.92 points (0.62%).
The Nasdaq reached a record high for the second consecutive day, closing at 18,028.76, up 149.46 points (0.84%).
This marked the first time the Nasdaq broke the 18,000 mark.
EV Stocks Remain Strong
Electric vehicle (EV) stocks performed well.
Better-than-expected second-quarter delivery results significantly boosted the stock prices.
Tesla’s second-quarter deliveries were down 4.8% from a year ago, but they exceeded market expectations of 439,000 units, recording 443,956 units.
Consequently, Tesla’s stock price rose to $231.26, up $21.40 (10.20%).
Rivian’s stock price also soared on news that its second-quarter deliveries increased 9.1% from a year ago.
Nasdaq’s second-quarter deliveries were 13,790 units, overwhelming market expectations of 12,000 units.
As a result, Nasdaq’s stock price jumped to $14.89, up $0.97 (6.97%).
Nvidia the Only One to Fall Within M7
Among the M7 large tech stocks, all but Nvidia rose, with Tesla soaring 10%.
Microsoft Corporation(MS) closed at $459.28, up $2.55 (0.56%), and Apple closed at $220.27, up $3.52 (1.62%).
Alphabet closed at $185.24, up $2.25 (1.23%), and Amazon closed at $200.00, up $2.80 (1.42%).
Meta Platforms also closed at $509.50, up $4.82 (0.96%).
In contrast, Nvidia closed at $122.67, down $1.63 (1.31%), due to news that French competition authorities are set to impose sanctions on the company for abusing its dominant market position and hindering market competition.
International Oil Prices Fall
International oil prices fell a day after surging.
West Texas Intermediate (WTI) crude rose to $84.38 per barrel early in the session amid concerns that Hurricane Beryl could disrupt U.S. oil production. However, these concerns dissipated, and prices turned downward.
Brent Crude Oil, the international benchmark, fell $0.36 (0.42%) to $86.24 per barrel.
U.S. benchmark WTI also closed at $82.81 per barrel, down $0.57 (0.68%).
